Artesian Resources Q3 revenue rises on higher water use; EPS falls year over year

Overview

• US water utility's Q3 revenue rose 4.8% yr/yr, driven by higher water use and rate hikes

• Q3 diluted EPS fell to $0.65 from $0.68 a year earlier

• Operating expenses rose due to higher supply, treatment, payroll, and power costs

Outlook

• Company did not provide specific financial guidance for upcoming quarters or full year in its press release

Result Drivers

• HIGHER WATER CONSUMPTION AND CUSTOMERS - Co said increased water use, more customers, and higher DSIC revenue lifted water sales

• WASTEWATER REVENUE - Growth in industrial and residential/commercial wastewater services boosted other utility revenue

• SERVICE LINE PLAN FEES - Higher fees for Service Line Protection Plans contributed to non-utility revenue growth

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the water & related utilities peer group is "buy"

• Wall Street's median 12-month price target for Artesian Resources Corp is $43.00, about 27.5% above its November 9 closing price of $33.72

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)